Key points from the Spring Budget 2024

Published: 21/03/2024 By Hannah Duncan

Yesterday, the Chancellor unveiled the much-anticipated Spring Budget 2024, and we've got the key takeaways for you right here!:

  • Employee National Insurance reduced again by 2% - With effect from April 2024 the new NI rate will be 8% reduced from 10% (previously 12%)

  • Class 4 NICs reduced further - From April 2024 a further 2% reduction on Class 4 National Insurance contributions (originally 9% now 6%) paid on profits between £12,570 - £50,270

  • High Income Child Benefit Charge threshold raised - From April 2024 the highest earning parent can now earn up to £60,000 in order to get full child benefit; previous earning limit was £50,000

  • Pension lifetime allowance scrapped - The current £1,073,100 lifetime limit before a pension is taxable will be abolished from April 2024

  • New British ISA - The introduction of a new tax free £5,000 ISA allowance for investment in UK equities (in addition to the current £20,000 allowance)

  • Higher rate Capital Gains Tax cut - From April 2024 those who earn more than £50,270 will enjoy a cut of 4% when paying CGT (28% down to 24%)

  • Furnished Holiday Lettings tax regime scrapped - From April 2025 landlords will no longer be able to deduct their mortgage interest payments from their rental income

  • Stamp duty relief for multiple dwellings scrapped - Anyone wishing to purchase additional properties will no longer be entitled to stamp duty relief

  • VAT threshold increased - From April 2024 the threshold that small businesses must register for VAT increases from £85,000 to £90,000

  • Alcohol and Fuel Duty frozen -  The current freeze on alcohol duty is extended to February 2025. Fuel duty cuts remain for a another year